Corporate Alert >> New York City to Provide Financial Assistance to Small Businesses Impacted by COVID-19

Corporate Alert >> New York City to Provide Financial Assistance to Small Businesses Impacted by COVID-19

March 20, 2020

New York City (NYC) has recently made available two financial assistance programs to aid small businesses located in the five boroughs. NYC Mayor Bill de Blasio announced on March 8, 2020 that NYC will offer access to the NYC Employee Retention Grant Program (ERGP) and the NYC Small Business Continuity Fund (SBCF) to provide financial relief to small businesses located in NYC who have experienced revenue reduction due to COVID-19.

NYC Employee Retention Grant Program

The ERGP provides grants to NYC small businesses with fewer than five employees to cover 40% of payroll costs for a two-month period in amounts of up to $27,000.

Eligibility RequirementsTo qualify for the ERGP, businesses must:

Be located within the five boroughs of NYC;

Demonstrate that COVID-19 caused at least a 25% decrease in revenue;

Employ one to four employees in total across all business locations;

Have been in operation for at least six months; and

Have no outstanding tax liens or legal judgments.

NYC Small Business Continuity Fund

The SBCF provides zero interest loans of up to $75,000 to help NYC businesses with fewer than 100 employees alleviate the financial distress caused by profit reductions resultant from COVID-19.

Eligibility RequirementsTo qualify for loans under the SBCF, businesses must:

Be located within the five boroughs of NYC;

Demonstrate that COVID-19 caused at least a 25% decrease in revenue;

Employ 99 or fewer employees in total across all business locations;

Demonstrate ability to repay the loan; and

Have no outstanding tax liens or legal judgments.

ERGP and SBCF Applications

Eligible businesses can apply for an ERGP here. Although applications have not yet opened for the SBCF, interested businesses can complete this interest form to receive a notification when applications become available.

As part of the application process, applicants will be required to verify at least a 25% decrease in revenue. The NYC Department of Small Business Services will compare the business’ average revenue for two months in 2020 following the COVID-19 outbreak to both: